Chun-Ching Ho and Woan-yuh Jang
This study investigates analysts’ sobering-up effect on future stock returns and further verifies whether analysts’ familiarity with the forecasted firms and market sentiment…
Abstract
Purpose
This study investigates analysts’ sobering-up effect on future stock returns and further verifies whether analysts’ familiarity with the forecasted firms and market sentiment affect the relationship between the magnitude of the sobering-up effect on analysts’ earnings forecasts and long-term future stock performance.
Design/methodology/approach
Using stocks listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) from 2000 to 2021, we propose a trading sobering-up strategy which involves taking a long position in the portfolio with a smaller magnitude of the sobering-up effect and a short position in the portfolio with a greater magnitude of the sobering-up effect.
Findings
We find that an advanced trading strategy which involves taking a long (short) position in the portfolio with a smaller (greater) magnitude of sobering-up effect during the bullish market period, is superior to the sobering-up trading strategy as well as the sobering-up plus familiarity trading strategy and can generate a significantly positive long-term abnormal stock return.
Originality/value
This study explores the dynamic psychological factors behind the magnitude of the sobering-up effect on analysts’ earnings forecasts’ influences. Employing familiarity and market sentiment verify the relationship between the magnitude of the sobering-up effect on analysts’ earnings forecasts and future stock returns. The results give a reference for investors when investing and offer the potential investors significant trading gains.
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Jiun‐Sheng Chris Lin, Woan‐Yuh Jang and Kuan‐Jiun Chen
This study aims to examine how e‐service initiatives affect a firm's market valuation. To provide further insight, paper also assesses the impact of technology acquisition mode…
Abstract
Purpose
This study aims to examine how e‐service initiatives affect a firm's market valuation. To provide further insight, paper also assesses the impact of technology acquisition mode, the firm's organizational position, industry characteristics, and service introduction strategy on firm value.
Design/methodology/approach
Using an event study methodology, we examined the market value of e‐service initiatives through their impact on stock returns‐investors' expectations of firm performance. Based on strategy and marketing theories, we also developed a conceptual framework to examine factors that influence firm performance and value.
Findings
Findings include positive abnormal returns accompanying e‐service announcements. Regression results also show market size and firm size have negative effects on valuation while firm experience has positive effects on firm value. Whereas pioneers and late entrants have an advantage over early entrants, firms acquiring needed technology through collaborative R&D or using diversification expansion strategies experience increased returns. Results are consistent across diverse industry types.
Research limitations/implications
Based on concepts derived from extant marketing strategy and technology management research, this research provides a new perspective for examining the performance implications of e‐services introduction by developing an integrated framework that identifies a comprehensive set of factors that shape the market valuation of e‐service initiatives. Future research can further evaluate the performance effects of e‐service initiatives on other dimensions of corporate performance as well as track the performance before and after announcements to give further insight into effective corporate strategies and long‐term investigation.
Practical implications
When firms initiate e‐services, technology acquisition mode, organizational position, industry characteristics, and service introduction strategies affect financial performance, and therefore, should be accounted for by managers. Recognizing value drivers and their varying effects on performance can provide managers with insights into developing e‐services.
Originality/value
This study presents a framework integrating various performance‐influencing forces at work when a firm initiates e‐services. This framework helps practitioners and researchers in clarifying the importance of e‐service initiatives and the fit of such services with performance‐affecting factors.
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This study aims to examine empirically how business in Taiwan has successfully implemented and benefited from ISO 9000.
Abstract
Purpose
This study aims to examine empirically how business in Taiwan has successfully implemented and benefited from ISO 9000.
Design/methodology/approach
Of 1,668 survey questionnaires mailed to companies with ISO 9000 certification, a total of 441 usable responses were used in the survey. Using the structural equation model, this study is grounded in a theoretical framework that links five key variables: top management support, quality planning, employee involvement, continuous improvement and firm performance.
Findings
The empirical results indicate that there is a positive relation between ISO 9000 and business performance. Keys to success include four constructs, namely top management support, quality planning, employee involvement and continuous improvement. These constructs are a series of chain, rather than parallel components.
Originality/value
This study constructs a conceptual framework that links the following key variables: top management support, quality planning, employee involvement, continuous improvement and firm performance. This study not only assesses the impact of these practices on firm performance, but also clarifies the process through which ISO 9000 implementation effects performance. Moreover, it provides an empirical framework for testing the well‐known PDCA cycle. The results should provide valuable information for dealing with similar managerial issues.
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Woan‐yuh Jang, Ching‐i Lin and Ming‐ju Pan
The purpose of this paper is to examine the relationship between business strategies and the adoption of enterprise resource planning (ERP) in Taiwan's communications industry…
Abstract
Purpose
The purpose of this paper is to examine the relationship between business strategies and the adoption of enterprise resource planning (ERP) in Taiwan's communications industry. This sector has experienced astounding growth in production over the past three years.
Design/methodology/approach
Data are collected from 100 organizations through face‐to‐face interviews. A discriminant analysis is used to test the hypotheses pertaining to the ERP adoption decision.
Findings
The results show that a number of identified variables among the key internal and external descriptors of the firm's business strategies are the chief factors that determine whether ERP is adopted or not. Another variable, organization size, is also important, indicating that companies of different size approach the adoption of ERP differently. These variables correctly classify 78 percent of the decisions made with respect to the adoption of ERP.
Originality/value
This is the first empirical research study that examines the relationship between a firm's business strategy and the adoption of ERP in the rapidly expanding communications industry in Taiwan. With an increased understanding and better insight into this relationship, it should be possible for managers to be more proactive in their planning of the future adoption of an ERP system.
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The purpose of this study is to empirically examine whether business can benefit from ISO 9000, and examines how motivation impacts the depth of ISO 9000 implementation and how…
Abstract
Purpose
The purpose of this study is to empirically examine whether business can benefit from ISO 9000, and examines how motivation impacts the depth of ISO 9000 implementation and how the depth of ISO 9000 implementation impacts a firm's performance in Taiwan.
Design/methodology/approach
A survey questionnaire was mailed to the 1,668 companies with ISO 9000 certification, and a total of 441 usable responses were returned. Using a structural equation model, this study empirically examines the relationship between ISO 9000 motivation and ISO 9000 implementation depth and how implementation depth influences firm performance.
Findings
The results demonstrate that a positive relationship exists between the extent to which companies implement ISO 9000 and firm performance. Additionally, internal motivation fully mediates the relationship between external motivation and ISO implementation depth. Furthermore, the implementation of ISO 9000 directly and positively influences operational performance and indirectly affects market performance, in turn positively impacting business performance.
Originality/value
This study represents a first attempt to construct a conceptual framework that integrates the motivations behind implementing ISO 9000 certification, the implementation depth underlying processes, and ISO 9000 performance.